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American Electric (AEP) Q1 Earnings Miss, Revenues Fall Y/Y
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American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2020 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.09 by 6.4%. The bottom declined 14.3% from $1.19 in the year-ago quarter.
The company reported GAAP earnings of $1 per share compared with the year-ago quarter’s $1.16.
The year-over-year downside can be attributed to COVID-19 pandemic related expenses.
Total Revenues
American Electric’s first-quarter revenues of $3.7 billion missed the Zacks Consensus Estimate of $4.3 billion by 14%. The reported figure declined 9.8% from the year-ago quarter’s $4.1 billion.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Total expenses in the quarter were $1,841.5 million compared with $1,844.3 million a year ago.
Operating income was $751.6 million, down 6.5% from $804.2 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter decreased to $247.2 million from $310.8 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $117 million, down from $156.6 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated operating earnings of $140.6 million, up from $124.2 million in the first quarter of 2019.
Generation and Marketing: Operating earnings were $34.7 million, down from $43.1 million in the year-ago quarter.
Corporate & Other: Operating losses were $35.3 million compared with operating loss of $49.9 million in the year-ago quarter.
Financial Update
As of Mar 31, 2020, American Electric had cash and cash equivalents of $1,554.6 million compared with $246.8 million as of Dec 31, 2019.
Long-term debt was $25.78 billion as of Mar 31, 2020, compared with $25.13 billion as of Dec 31, 2019.
Cash flow from operations was $615.7million during first-quarter 2020 compared with $808.3 million in first-quarter 2019.
2020 Guidance
American Electric reaffirmed 2020 operating earnings guidance in the range of $4.25-$4.45 per share. The Zacks Consensus Estimate for 2020 earnings, pegged at $4.28, lies below the mid-point of the guidance.
Public Service Enterprise Group Inc. (PEG - Free Report) reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.
FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.
NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.
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American Electric (AEP) Q1 Earnings Miss, Revenues Fall Y/Y
American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2020 adjusted earnings per share of $1.02, which missed the Zacks Consensus Estimate of $1.09 by 6.4%. The bottom declined 14.3% from $1.19 in the year-ago quarter.
The company reported GAAP earnings of $1 per share compared with the year-ago quarter’s $1.16.
The year-over-year downside can be attributed to COVID-19 pandemic related expenses.
Total Revenues
American Electric’s first-quarter revenues of $3.7 billion missed the Zacks Consensus Estimate of $4.3 billion by 14%. The reported figure declined 9.8% from the year-ago quarter’s $4.1 billion.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote
Quarterly Highlights
Total expenses in the quarter were $1,841.5 million compared with $1,844.3 million a year ago.
Operating income was $751.6 million, down 6.5% from $804.2 million in the year-ago quarter.
Segmental Performance
Vertically Integrated Utility Operations: Operating earnings in the quarter decreased to $247.2 million from $310.8 million in the year-ago quarter.
Transmission & Distribution Utilities: Operating earnings were $117 million, down from $156.6 million in the year-ago quarter.
AEP Transmission Holdco: This segment generated operating earnings of $140.6 million, up from $124.2 million in the first quarter of 2019.
Generation and Marketing: Operating earnings were $34.7 million, down from $43.1 million in the year-ago quarter.
Corporate & Other: Operating losses were $35.3 million compared with operating loss of $49.9 million in the year-ago quarter.
Financial Update
As of Mar 31, 2020, American Electric had cash and cash equivalents of $1,554.6 million compared with $246.8 million as of Dec 31, 2019.
Long-term debt was $25.78 billion as of Mar 31, 2020, compared with $25.13 billion as of Dec 31, 2019.
Cash flow from operations was $615.7million during first-quarter 2020 compared with $808.3 million in first-quarter 2019.
2020 Guidance
American Electric reaffirmed 2020 operating earnings guidance in the range of $4.25-$4.45 per share. The Zacks Consensus Estimate for 2020 earnings, pegged at $4.28, lies below the mid-point of the guidance.
Zacks Rank
American Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
Public Service Enterprise Group Inc. (PEG - Free Report) reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate.
FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.
NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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